Online building materials retailer CMO Group has seen its sales dip as "consumer confidence has continued to erode".
The Plymouth-headquartered business, said in its interim results for the period ended June 30 that conditions remained challenging.
Total sales fell to £36.9m from £41.9m in 2022 with an operating loss of £500,000 compared to a £5000,000 profit in the same period last year.
The AIM-listed firm said over the six month period, in line with its strategic priorities, it delivered improvement in product margins, carriage costs and overhead efficiencies. Bosses at the company added that it saw improving sales trend in superstores, but the online tiles market remained "extremely challenging".
Read more: Over 40 jobs saved after Bristol law firm sold out of administration
Volumes in the building materials market were down by 14% in the first seven months of this year and forecasts for 2023 from the Construction Products Association, published in July, reported a reduction of 19% in newbuild housing and 11% in private housing.
The Devon company said since its last market update consumer confidence continued to "erode" with increasing interest rates and "persistent high levels of inflation".
The board said it anticipated that this slower rate of improvement will continue and expects the group to deliver full revenues of "approximately £73m". In addition, the board expects that the actions taken to increase margins, reduce costs and invest in enhanced digital marketing will maintain the improving sales trend and deliver profitable sales growth going forward.
Dean Murray, chief executive of CMO Group said: "Like many others in our industry, our experience of this period has not been easy, especially with the tile market rebalancing online versus in-person. We are however, seeing an improving trend in our SUPERSTORES endorsing again our business model and strategy.
"In the midst of difficulty lies opportunity and we have embraced our opportunity wholeheartedly, improving margins, reducing costs and working towards the next organic vertical launch. Consequently, we are a better business and in good shape to go forward. We remain confident in our model and in our strategy to take the business forward and to deliver profitable progress."
Why not sign up to get the latest South West business news straight to your inbox.
